Hi Aaron,I use the url below to find properties in my area going through the foreclosure process and if their is equity in the property I notify owner I am interested in purchasing to help them out. 

A good resale value note will be well seasoned (over a year of on time payments), interest rate of 7-9%+, balloon is a plus, in short foreclosure or highly desirable state, good equity in the house, and created by a licensed Residential Mortgage Loan Originator.If note is poorly created, mortgagor can walk away with a free house that mortgagee cannot even foreclose on due to possible broken laws or poor paperwork.

Neither a private lender nor an owner is going to be willing to have a 3rd position mtg, and unlikely a private lender will take a 2nd.  

Go to lunch and ask as a general question has he ever partnered on a deal and was it a positive experience?

If that's the case, then it seems that ROI might go down since the discount of equity goes away in the calculation?

It looks like the property will cash flow out of the gate, so we'd like to just build equity for now and maybe flip in the future.

While I was interested in real estate, I wasn't "positive" I wanted to do it just yet.  

I am in the middle of a deal where I might act as a small equity partner.

When I purchased my first property I was roughly in your position - I had maybe $20,000 and put down $12,000.

I am positive I already know the answer, but please share if there's a way.